Fruit importer Fyffes has been forced to lower its profits forecast due to a hike in fuel costs and higher losses from a venture in Brazil.
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The company, best known for importing bananas, said today (24 May) that it expects operating profit to reach EUR15m (US$20.2m) this year, down from an earlier forecast of EUR20m.
A “significant increase” in bunker fuel prices and losses from Nolem, Fyffes’ winter melon venture in Brazil were behind the decision to lower its profits target, the company said. Fyffes warned that the hike in bunker fuel prices is likely to continue.
Fyffes also pointed to a delay in the recovery of banana prices in continental Europe.
The warnings served to hit Fyffes share price, which had fallen EUR0.12 to EUR0.85 at time of press.
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